The Trust’s Manager, Walter Price has over 40 years of experience of investing in technology and is based in San Francisco at the heart of the tech world. Read his latest views in Investment Insights from Silicon Valley below.
Against the backdrop of 2019 – where technology market leadership shifted markedly – Walter looks at the changing competitive landscape for technology companies, illusory profits for tech unicorns, and a revival in semiconductor manufacturing. He also turns the spotlight on governance in the sector.
A new ‘Tesla Gigafactory’ is on its way to Germany – what might the future look like for the car industry there. We also look how the major social platforms are approaching political advertising and, finally, how does the team separate a good idea from a good business in the evolving world of tech?
The team visited China recently and saw evidence of Chinese manufacturing hurting. However, less mature supply chains in many alternative locations mean while China might be down, it is not out. We also look at developments in the payments arena, and what’s driving the next wave of hardware devices.
Walter Price examines China’s new tech-focused ‘Star’ stock exchange – a move in the right direction, but can it become a Nasdaq rival? Walter also looks at the growing tension between Japan and Korea and the likely impact on tech. Finally, should we be concerned by China’s slowing growth?
Walter Price gives his outlook on the varying levels of business confidence across the technology sector in light of mixed economic indicators and financial market uncertainty. Walter also discusses sustainability, plus the next generation of cloud-based security companies come under the spotlight.
In his latest update, Walter Price looks at some of the technology sector’s visionary leaders and how they strive to stay ahead of consumer and market trends. Walter also reviews the status of the so-called ‘legacy businesses’ and how they have fared in their transition to cloud computing.
The fourth quarter earnings season is in its final stages. It came amid a difficult backdrop: tariff negotiations with China are ongoing, the US government has only just emerged from a protracted shut-down and the global economy appears to be slowing.
Walter Price looks at the prospects for the technology sector in a slower growth world. Amidst signs that the global economy could be shifting into a lower gear, Walter spells out why technology companies can still thrive when economic growth falters.
Walter Price's bulletin provides insight on the immediate and longer-term outlook for the technology sector in the light of this week's market sell-off. The team continues to carefully balance risks and opportunities, leveraging their industry expertise and emphasising individual stock selection.
Technology is disruptive. It can render old industries obsolete, and bring new industries into existence. Naturally this has frequent - and sometimes controversial - consequences for the labour market, but historically, where one industry has faded, another has often emerged to to take its place.
The shifting mobile market claimed another scalp last month as Ericsson reported a slump in profits. The Swedish telecoms equipment maker blamed rising competition and said it would continue to cut costs, but its problems are part of a wider phenomenon...
Apple’s EU tax bill Apple attracted headlines not solely for the launch of its new iPhone 7 this month, but also for an eye-popping €13bn tax bill from the European Commission. The EC ruled that the ‘sweetheart deal’ struck between the Irish Government and the US tech giant was illegal.
Investors the world over are worried about growth. Is China slowing? Is the US slowing? And if so, how severely? The technology sector may be better-placed over the long-term to deliver structural growth, but it is not immune from these concerns.
Technology was one of the clear winners in 2015, amid a generally lacklustre year for stock markets. The Nasdaq finished the year nearly 6% ahead of the wider S&P 500 index. However, the strength has been confined to a few key names, the so called ‘FANG’ companies.
Originally named for their rarity, technology ‘unicorns’ are now as common as pigeons on Wall Street. From Airbnb, Dropbox to Pinterest and Uber, there are an increasing number of companies hitting the $1bn valuation mark in the private market (the qualifying point for a ‘unicorn’).
The domestic Chinese market has been in meltdown since the Government announced short-selling restrictions. This is obviously a concern. We have around 5% of our portfolio in China, albeit in Hong Kong listed shares rather than the ‘A’ Shares market.
A June rise in interest rates now looks increasingly unlikely, with some commentators believing the Federal Reserve may defer into 2016. Nevertheless, bond markets are wobbling and the issue of interest rate rises continues to influence stock markets. The technology sector is not immune.
There is almost nothing that illustrates the pervasiveness of modern technology better than the development of the connected car. A few short years’ ago, cars were a technology-free zone, and yet now technology is promising to transform the driver’s experience and improve road safety.
There has been a notable sell-off among semi-conductor stocks this month, enough to drag the Nasdaq lower and raise fears of a wider slow-down in the technology sector. The catalyst for the share price falls was a profit warning from Microchip Technology, which cited weaker demand in China.
When the higher valued technology stocks sold off in March and April, the key to their revival or otherwise was always likely to be earnings. As it was, many of the bellwether technology groups either hit or beat consensus expectations in the April earnings season.
In last month’s newsletter, we mentioned the burgeoning trend of internet security. Major retailers have been stung by the coordination and sophistication of recent cyber-attacks and have been forced to address the holes in their security systems as a matter of priority.
Microsoft has long understood the necessity of shifting its business from its weakening core markets to newer and higher growth areas. To date, its execution has been erratic; there have been ill-judged forays into the mobile phone world, for example.